PPL Gas Discovery Barki-1 Catalyzes Energy Hopes
The PPL gas discovery at the Barki-1 well in the Kotri North Block marks a significant milestone in Pakistan’s journey toward energy self-reliance. In a disclosure to the Pakistan Stock Exchange, Pakistan Petroleum Limited (PPL) announced a successful hydrocarbon discovery in District Jamshoro, Sindh, validating the potential of the Pab Formation and opening new avenues for exploration, production, and energy security.
This blog delves into the details of the discovery, technical data, stakeholders involved, implications for Pakistan’s energy landscape, challenges ahead, and future prospects.
Discovery Details: Drilling, Testing, and Results
Exploration and Well Development
- The Barki-1 well was spudded on July 21, 2025, in the Kotri North Block, under a joint-venture arrangement.
- It was drilled to a depth of 3,392 feet targeting the Late Cretaceous and Early Paleocene sands of the Pab Formation.
- After initial logging and evaluation of wireline data, the joint venture team proceeded with Modular Dynamic Testing (MDT), which confirmed hydrocarbon presence in interbedded sandstones.
- Once the zones were identified, the well was completed and perforated in the productive intervals.
Flow Testing & Stimulation
- Initial Completion Integrity Testing (CIT) recorded a gas flow of around 1.5 million standard cubic feet per day (MMscfd).
Profit by Pakistan Today - To enhance productivity, the perforated intervals underwent an acid stimulation job, which boosted the post-stimulation flow rate to 5.5 MMscfd of gas.
- Additionally, the wellhead pressure increased significantly, climbing from 200 psig to 460 psig after stimulation — an indicator of improved reservoir performance.
These results underscore that the Pab sands in the Kotri North Block hold promising hydrocarbon potential and may be viable targets for future development.
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Stakeholders & Equity Structure
The Barki-1 discovery was achieved under a joint venture with the following working interests:
- United Energy Pakistan Limited as the operator, holding 50% working interest
- Pakistan Petroleum Limited (PPL) with 40% working interest
- Asia Resources Oil Limited holding the remaining 10% stake
This distribution aligns incentives for collaboration in exploration, operations, cost sharing, and revenue distribution.
Strategic & Economic Implications
Strengthening Energy Security
Pakistan has long struggled with gas shortfalls, relying heavily on imports and expensive LNG to meet demand. Discoveries like PPL gas discovery at Barki-1 can help reduce import dependency, stabilize gas supply, and cushion against price volatility.
Stimulating Exploration Activity
This success acts as a proof of concept for the Pab Formation in the region and will likely encourage further drilling in similar geological prospects within the Kotri North Block and neighboring acreage. Companies may accelerate seismic surveys, exploratory campaigns, and appraisal drilling.
Investor and Market Confidence
A publicly disclosed and tested discovery raises investor confidence in Pakistan’s oil & gas sector. It signals that exploration risk can yield dividends, making upstream assets more attractive for investment and joint partnerships.
Economic Multipliers
- Local development: Drilling, facilities, and downstream infrastructure create jobs and services in Sindh.
- Revenue growth: Future production will contribute to government revenues via royalties, taxes, and production sharing.
- Downstream industries: Steadier gas supply can support fertilizer, power plants, and petrochemical industries.
Geological Context & Comparative Insights
The Pab Formation Potential
The Pab Formation, a target in many basins in Pakistan, is now validated in Kotri North. Its success enhances the geological model and encourages adjacent blocks to be re-evaluated for similar layers.
Comparisons with Other Fields
Pakistan has several matured gas fields like Sui, Qadirpur, and Sawan.
The Barki-1 discovery adds another layer of frontier exploration success in onshore Sindh basins.
Unlike established fields, Barki-1 is still in exploration/early production testing phase. Its performance over time will determine how it ranks among Pakistan’s key gas assets.
Challenges & Considerations
While promising, several hurdles and questions remain:
Scalability & Sustainability
A flow rate of 5.5 MMscfd is significant, but scaling to full field development will require multiple wells, infrastructure, pipelines, and evaluation of reservoir deliverability over time.
Reservoir Uncertainties
Long-term reservoir behavior, pressure decline, compaction, water ingress, and connectivity between sands require further study and appraisal drilling.
Regulatory, Environmental & Infrastructure Factors
- Securing permits, environmental clearances, land acquisition, and stakeholder agreements can delay production.
- Infrastructure (gas gathering, compression, pipeline linkage) must be built or upgraded.
- Ensuring compliance with safety and environmental regulations will be key to sustainable operations.
Market & Pricing Risks
Gas price volatility, demand fluctuations, and policy changes can affect the project’s economic viability. Managing costs and optimizing operations will be crucial.
Path Forward & Future Outlook
- Appraisal Drilling & 3D Seismic
The joint venture will likely undertake appraisal wells and seismic imaging to delineate reservoir extent and reserves. - Field Development Plans
Based on positive results, regulators and operators will submit plans for full-scale development, including production facilities and pipelines. - Partnerships & Financing
International or local partners may participate to help absorb capital investment, reduce risk, and bring technical expertise. - Local Integration
Connecting production to existing gas grids or industrial users in Sindh can accelerate monetization and reduce wastage. - Export Opportunity
If production levels scale sufficiently, pipeline gas or LNG opportunities may be considered for export or cross-border supply within Pakistan.
Conclusion: A Discovery with Promise
The PPL gas discovery at Barki-1 in the Kotri North Block is a landmark in Pakistan’s upstream energy sector. With confirmed gas flow enhancements, a strong joint venture structure, and geological validation of the Pab sands, this discovery has the potential to shift the energy landscape in Sindh and beyond.
Though challenges in field development and scale-up remain, the discovery injects fresh optimism in Pakistan’s efforts to meet growing energy demand. If properly managed and developed, Barki-1 may become one of the new pillars of domestic gas supply, reducing import reliance and supporting downstream industries.
Stay tuned as this discovery progresses from exploration success to commercial field development — a journey that could reshape Pakistan’s gas story for years to come.
👉 PPL announces new gas discovery at Barki-1, Kotri North Block – Profit Pakistan Today
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